BlackRock has raised its stake in Michael Saylor's company, reflecting the growing institutional interest in Bitcoin.
BlackRock's Increased Stake
According to a Schedule 13G filing with the SEC, BlackRock increased its stake in MicroStrategy to 5%, representing about 11.2 million shares. This marks a 0.91% increase from its previous 4.09% holding.
Impact on Stock Prices
Following BlackRock's increased stake, MicroStrategy's stock rose 2.8% in pre-market trading to $325 by 12:25 pm UTC on February 7. MicroStrategy is the world's largest corporate holder of Bitcoin, with 471,107 BTC worth approximately $48 billion.
Future Company Plans
BlackRock's increased investment coincides with MicroStrategy's recent rebranding to 'Strategy' and unveiling a new Bitcoin-inspired marketing design. Despite a $670 million net loss in Q4 2024, Strategy plans to proceed with its '21/21 Plan', aiming to raise $42 billion over the next three years. The company has already raised $20 billion of this target, primarily funding its Bitcoin purchases through senior convertible notes and debt.
BlackRock's investment in Strategy underscores the growing sustained institutional interest in Bitcoin, despite current market conditions.
